Explain why most trade occurs because of comparative advantage

05.04 Trade Analysis—Template Name _Your Name Here____________________ Instructor________________________________ Use the numbers on the table to complete the charts below. Country United States Country A Developing Country B Developing Country C Developed Country D Developed CORN (Worker hours to produce one unit) 2 6 8 2 4 CITRUS (Worker hours to produce one unit) 4 10 10 6 8 APPAREL (Worker hours to produce one unit) 2 4 6 2 2 COMPUTER SOFTWARE (Worker hours to produce one unit) 4 12 8 8 4 Table 1: Complete a trade analysis for agricultural products. Choose which country from the table above. Corn Citrus Number of additional worker hours to produce one unit of citrus instead of one unit of corn United States Developing Country ___ Developed Country ___ Table 2: Complete a trade analysis for industrial products. Apparel Computer Software Number of additional worker hours to produce one unit of computer software instead of apparel United States Developing Country ___ Developed Country ___ 1. Analysis—Using the data you collected, answer each of the following analysis questions in well-written paragraphs in your own words. A. Identify an example of absolute advantage relative to the United States from your data tables. Be sure to identify which country has absolute advantage (U.S. or other), the product, and data to support your claim. Tip: When considering absolute and comparative advantage, worker hours to produce one unit is a reflection of productivity. Your answer here. B. Identify an example of comparative advantage relative to the United States from your data tables. Be sure to identify which country has comparative advantage (U.S. or other), the product, and data to support your claim. Your answer here. C. Explain why most trade occurs because of comparative advantage. Be sure to provide examples from the data tables or from the lesson to support your answer. Your answer here. ...
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